Nigeria Eurobonds Yield Increases Amid Risk-Off Sentiment

Nigeria’s Eurobond yields have surged to 19.54% due to risk-off sentiment and declining inflation, while local bond demand rises amid market uncertainties. Investors remain cautious ahead of potential changes in Fed policy, impacting global risks and bond valuations.

The average yield on Nigeria’s US dollar bonds has increased by 12 basis points, reaching 19.54% in the international market, attributed to a slowdown in headline inflation. Significant macroeconomic improvements have been witnessed, while the naira’s value remains stable due to monetary authority support. Concurrently, demand for local bonds is rising as investors seek higher yields, especially ahead of the upcoming March auction planned by the debt office.

The rise in Nigeria Eurobond yields reflects a broader risk-off sentiment driven by global economic uncertainties and local inflation dynamics. The bearish market sentiment is anticipated to persist unless favorable developments arise, prompting investor hesitation and a focus on safe-haven assets. Analysts will closely monitor Fed communications regarding interest rates, which impact market conditions significantly.

Original Source: dmarketforces.com